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Working the foreclosure market is not for everyone. Only those who are willing to invest a significant amount of work at every stage will be successful. Along with the beneficial discounts you can sometimes find, there are significant risks one needs to understand before taking the leap and making an offer to buy a “distressed property”. To minimize risk and avoid unnecessary exposure, foreclosure investors must take the time to learn the foreclosure process – which can vary from state to state.
In addition, there are other issues unique to certain types of foreclosure investing. Sometimes you have to approach an unwilling seller, or evict the former owner. And you need to be prepared for the deal to go off-the-rails at the last minute for any number of reasons.
Further, there are no guarantees, no inspections and no title insurance. Without title insurance, you must conduct your due diligence with extreme caution. Liens, always important issues with a real estate transaction, are especially critical in a foreclosure deal. And lack of due diligence in those areas can turn a sweet deal sour in an instant. That’s why Children’s H.E.L.P. so highly values the experience and expert advice it receives from its leadership team of real estate brokers and finance professionals.